FX Energy has signed a Joint Operating Agreement (JOA) with the Polish Oil and Gas Company (POGC). The JOA covers FX Energy's concession blocks 163-164 in its Northwest concession area. These two blocks cover approximately 212,000 acres (857 square kilometers), or approximately 15.5% of the Company's 1.35 million acre Northwest concession area. FX Energy will be Operator and will retain 51% interest; POGC will earn 49% interest by drilling the Ostrowiec well.
The Ostrowiec well targets potential leads in Main Dolomite (Ca2) and Rotliegend rocks identified by reprocessing and reinterpreting old seismic, magnetic and gravity data combined with newly acquired 2-D seismic. The Ostrowiec prospect is located about 20 kilometers north of the Grotow carbonate platform and appears on seismic to be analogous to POGC's MLG oil and gas field, which is currently under development.
The Ostrowiec-1 well is planned to spud in approximately 60 days and is anticipated to drill to a total depth of 4,150 meters. The well is intended to test reservoir properties and hydrocarbon saturation of Ca2 and Rotliegend rocks. The area of the Ca2 platform at the Ostrowiec location is estimated to be approximately 30 sq. kilometers. The secondary target of the Ostrowiec-1 well is Rotliegend Aeolian sandstones in a structural area of approximately 12 sq. kilometers.
Richard Hardman, Senior Technical Advisor to the FX Energy Board, stated, "The Ostrowiec-1 well is a much higher risk well than the Rotliegend structural traps in the Fences concession. But, it is also a large, high potential prospect that, if successful, could be transformational for FX Energy."
David Pierce, president of FX Energy stated, "We are very pleased to be working with POGC on this potentially very large project. POGC discovered and operates the MLG field to the south of our location, so it has a deep and well founded understanding of the Ca2 opportunity at Ostrowiec. In addition, POGC has been a very good partner as operator in the Fences concession and elsewhere in Poland. We are delighted to have POGC working with us."
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